Dan Dayle started a business by issuing an $$97,000$ face value note to First State Bank on January $1,$ Year $1.$ The note had a $8$

percent annual rate of interest and a five$-$year term. Payments of $$24,294$ are to be made each December $31$ for five years.

Required:

a$.$ What portion of the December $31,$ Year $1,$ payment is applied to interest expense and principal?

b$.$ What is the principal balance on January $1,$ Year $2?$

c$.$ What portion of the December $31,$ Year $2,$ payment is applied to interest expense and principal?

Note: Round your answers to the nearest dollar amount.

a$.$ Interest expense

a$.$ Principal

b$.$ Principal balance

c$.$ Interest expense

c$.$ Principal